Urenco profits soar as uranium goes nuclear

Urenco, the nuclear fuel company, is set to reveal record profits this week on the back of soaring uranium prices. The company, which enriches uranium for power stations, is expected to confirm a burgeoning order book when it announces its annual results on Tuesday.

Soaring prices of the metal, which hit record highs earlier this month, have increased the demand from customers for Urenco’s enrichment services. By enriching the fuel further, companies require less uranium. Strong global demand, a shortage of supply and the expected renaissance in the nuclear power generation industry are all behind the recent price surge.


Earlier this month, analysts at RBC Dominion Securities, the Canadian bank, said they forecast the average price for 2007 to reach $100 a pound, up from its current level of $85.

In an interview, Helmut Engelbrecht, Urenco’s chief executive, declined to comment on the results but confirmed the rise in price of the raw material has had a positive impact on business volumes.

Telegraph